The Assessing Officer disallowed one per cent of the total expenditure on an ad hoc basis, which was partly sustained by the Commissioner (Appeals) in respect of certain administrative expenses. The Tribunal held that the assessee maintained regular books of account duly audited under section 44AB and the Assessing Officer had neither rejected the books under section 145 nor pointed out any specific defect or discrepancy in the expenditure claimed. In the absence of any material establishing that the expenses were not incurred wholly and exclusively for business purposes, the ad hoc disallowance was unsustainable and was deleted. (AY. 2017-18)